Santa$$s Workshop

Complete the excel spreadsheet using the following information.

Santa$$s Workshop Company has established standards for the toys produced. Santa$$s Workshop has several observations to help calculate the overhead rate. Santa wants the overhead calculated by using the number of product units produced, but the head bookkeeping elf argues for direct labor hours as the activity that should be used since overhead is allocated on by direct labor hours. Use the high$-$low method find the variable and fixed overhead rates.

Product Direct Labor Total

Units Hours Overhead

$7251,135$ $$15,450$

$7001,120$ $$15,346$

$7551,165$ $$15,856$

$8151,235$ $$16,125$

$8501,360$ $$16,714$

$8451,320$ $$16,695$

Standard cost per unit:

Material $(2\mathrm{.}5$ pounds @ $$3\mathrm{.}70$ per lb$.)$ $ $9\mathrm{.}25$

Labor $(1\mathrm{.}6$ hours@$$9\mathrm{.}75$ per hr$)$ $$15\mathrm{.}60$

Variable Overhead $(1\mathrm{.}6$ hours @ $???)??????$

Fixed Overhead $(1\mathrm{.}6$ hours@ $???)??????$

The fixed cost standard rate uses $1,120$ hours $($Round to two decimals.$).$

Complete the standard cost card on the excel spreadsheet.

Analysis of the actual factory data show the following $($none has been recorded$)$:

Production:

Material is added at the beginning of the process.

Beginning units in process $(30\%$ complete conversion$)20$ units

Transferred to finished goods $625$ units

Ending units in process $(65\%$ complete conversion$)40$ units

Material used during the month $1,710$ pounds

Material purchased during the month $2,200$ pounds costing $$8,250$

Labor used $1,132$ hours costing $$11,321$

Variable Factory overhead $$6,839$

Fixed factory overhead $$8,796$

Santa$$s workshop uses the FIFO method

a$.$ Find the variable overhead rate, fixed overhead rate, and standard cost card $($Due in Module $5).$

b$.$ Prepare a process cost sheet using standard costing. $($Due in Module $6)$

c$.$ Find the amount transferred to finished goods. $($Due in Module $6)$

d$.$ Prepare the journal entries to record the transfer to finished goods. $($Due in Module $6)$

e$.$ Find the material quantity and price variance. $($Due in Module $8)$

f$.$ Find the labor efficiency and rate variance. $($Due in Module $8)$

g$.$ Find the factory overhead variances. $($four variance method$)($Due in Module $8)$

h$.$ Make the required journal entries to record the variances. $($Due in Module $8)$